New Delhi [India], May 15 : Approval of another indigenisation list for strategically-important defence items will benefit defence manufacturers in the long run as localisation is likely to reduce dependence on imports, said brokerage firm Prabhudas Lilladher.
The brokerage said it believes this is a positive development for defence companies such as Bharat Electronics Ltd, Hindustan Aeronautics Ltd, Mazagon Dock Shipyard, Garden Reach Shipbuilders and Engineers, Goa Shipyard Ltd, Mishra Dhatu Nigam, Hindustan Shipyard ltd, and Munitions India ltd.
The defence ministry approved a fresh list of 928 components and subsystems on Sunday, which will only be procured from the domestic industry after a ban on their import kicks in under a staggered timeline of around 5.5 years.
The list released on Sunday is in continuation to the three that were brought out in December 2021, March 2022 and August 2022. These lists contain 2,500 items which are already indigenised and 1,238 (351+107+780) items which will be indigenised within the given timelines, the brokerage said.
Indian armed forces are projected to spend around USD 130 billion in capital procurement over the next five years, the brokerage said citing estimates.
The government has set the target of achieving defence manufacturing worth Rs 175,000 crore including defence exports of Rs 35,000 crore by the year 2024-25.
The Government has taken several policy initiatives in the past few years and brought in reforms to encourage indigenous design, development and manufacture of defence equipment, thereby promoting self-reliance in defence manufacturing in the country.
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